Au modified TiO2/In2O3 hollow nanospheres were synthesized by the hydrolysis method using the carbon nanospheres as a sacrificial template. Compared to pure In2O3, pure TiO2, and TiO2/In2O3 based sensors, the Au/TiO2/In2O3 nanosphere-based chemiresistive-type sensor exhibited excellent sensing performances to formaldehyde at room temperature under ultraviolet light (UV-LED) activation. The response of the Au/TiO2/In2O3 nanocomposite-based sensor to 1 ppm formaldehyde was about 5.6, which is higher than that of In2O3 (1.6), TiO2 (2.1), and TiO2/In2O3 (3.8). The response time and recovery time of the Au/TiO2/In2O3 nanocomposite sensor were 18 s and 42 s, respectively. The detectable formaldehyde concentration could go down as low as 60 ppb. In situ diffuse reflectance Fourier transform infrared spectroscopy (DRIFTS) was used to analyze the chemical reactions on the surface of the sensor activated by UV light. The improvement in the sensing properties of the Au/TiO2/In2O3 nanocomposites could be attributed to the nanoheterojunctions and electronic/chemical sensitization of the Au nanoparticles.